Families of injured soldiers 'could be IHT exempt'

The families of soldiers and other armed personnel injured in the line of duty are being advised to keep copies of their medical records as they could be exempt from inheritance tax (IHT) in the future.

According to solicitors, the beneficiaries of people in their 80s or older who died as a consequence of their active service in the Second World War are able to claim this exemption, the Guardian reports.

The law has recently been extended to include members of the Royal Ulster Constabulary who were killed by terrorist activities in Northern Ireland.

As long as the condition which killed someone was a result of their service in the armed forces, then they are as exempt from the charge as someone who was killed immediately in a landmine explosion, according to the paper.

Those wishing to make a claim this way should seek professional advice from solicitors, the Guardian reports, before applying to the Ministry of Defence.

People who think their estate may be eligible are being advised to preserve their documents.

IHT is the tax paid on someone's estate once they die.

It is currently charged at a rate of 40 per cent on any value of the estate over £312,000.